After enjoying the best monthly return in a year for July, the Australian Market followed the minor capitulation in international markets, falling a hefty 78.4 points and wipe out much of the solid work leading up to the end of July. Markets went into a tailspin on concerns that the Fed could raise interest rates sooner than expected with the VIX also jumping to its highest level in 4 months.
US non-farm payroll data is out tonight so expect some volatility among the key FX majors.
How did the Aussie market perform today?
S&P/ASX200 lost 76.5 points or -1.38% on volume of $4 billion, closing at 5556.4.
Australian sector watch
Looking over the charts
- Today’s price action on the Aussie 200 index was decidedly bearish, taking out much of the good work achieved over the last couple of weeks in what can only be described as a convincing bearish engulfing pattern.
- In hindsight it looks as though there was minor bearish divergence on the stochastic as our Aussie Index made news highs but it was ever so slight. The reality was that many stocks were hitting higher highs, which is an optimistic sign.
- Traders are going to have to pay close attention to note whether this is a new buy-the-dip opportunity or if we are going to see some follow through below current levels. It would appear that European markets are well and truly entrenched in their down trends but the US and Aussie market are just coming off new recent highs.
- Support levels have been completely smashed through with new support sitting at 5545 and then 5500-5505 with resistance starting to gather around 5565, 5585 and then 5600.
ASX top 200 stock analysis
12% of stocks are showing oversold levels, 31% are showing overbought levels and 60% of stocks are currently above their long term moving average as of close of trading today. View the image below to better understand overbought and oversold levels.
S&P/ASX 200 Gainers and Losers
Top 5 gainers:
- KMD KATHMANDU HOLDINGS +3.31%
- MYR MYER HOLDINGS +3.07%
- SIR SIRIUS RESOURCES NL +2.04%
- TEN TEN NETWORK HOLDINGS +1.75%
- AGO ATLAS IRON +1.56%
Top 5 Losers:
- LYC LYNAS CORPORATION -17.65%
- MML MEDUSA MINING -6.31%
- RMD RESMED INC -5.08%
- FMG FORTESCUE METALS GROUP -4.88%
- KAR KAROON GAS AUSTRALIA -4.13%
Please note that these are our initial impressions and that it is important to read all disclaimers on this website when considering the information. If you would like to discuss further please contact:
Ashley Jessen
Director of Communications
Email: ashley_jessen@invast.com.au
Phone: 02 8036 7567